Designing a Conceptual Model of Production Cost Reduction in Manufacturing Cooperatives

The research was conducted with the aim of identifying and presenting a practical solution to reduce production costs in the manufacturing cooperative companies of Ardabil province using grounded theory approach. In the first step, interview protocols were extracted from the review of the research literature. In the second step, the data obtained from the interview using the MAXQDA program was investigated to determine the conceptual model. Finally, a model of cost reduction strategies for production cooperatives was developed. According to the conceptual model, the cost of manufacturing cooperatives is achieved through two strategies: corporate strategies (collaborative, resource, activities, product, distribution channel, customer segments, cost structures, income flow and customer relationship strategies) and governmental cost reduction strategies (cultural, innovation, investment, financial and monetary and logistic strategies). If the above-mentioned strategies are adopted according to the structure, common values, core competencies, systems, staff and management of these cooperatives, it can increase the ten outcomes (reduced net price, stable employment, productivity of production factors, internal competitiveness, profitability, the competitiveness of exports, the development and expansion of cooperative companies, improving quality, reducing waste, reducing energy consumption based on productive cooperatives. Meanwhile, the resistance economy and competitive dynamics can be effective in realizing these implications